Turkey Throws the First Punch – BIGA: Physical Gold Digital Transfer System
Turkey Throws the First Punch – BIGA: Physical Gold Digital Transfer System by Rory for The Daily Coin
As we have discussed for the past several years we have been awaiting some type of digital gold system to come online. We always thought it would be China, Russia or Iran since these three nations have been making the most noise about an overhaul of the global trade payment system. These three nations, China, Russia and Iran also have the most to gain by a system change. We have completely overlooked Turkey as being the nation that would step up and make something happen – but it is in fact Turkey that has drawn a target on their back.
The people overseeing NATO must be absolutely livid and ready to drop some “love bombs” or “bombs of democracy” on Turkey after Turkey has taken delivery of the Russian S-400 defense system and now this. WOW!!
System allows peer-to-peer transfer of digitizable gold, physical commodities via blockchain technology, says bank
Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank) announced the launch of its physically backed, blockchain-based electronic gold transfer system on Monday.
The system, called BIGA Digital Gold, allows “peer-to-peer transfer of digitizable gold, a physical commodity, via blockchain technology,” the bank said on Friday.
Research for BIGA Digital Gold began in 2018, with trials completed in September, the bank had previously said.
Takasbank is currently focusing on creating a structure for digitizing physical commodities and using blockchain in the financial sector.
“As a result of our efforts, we created the Digital Asset Transfer Platform, which distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations,” it added.
Assets can be traded on the platform as digital values called “BIGA,” which represents “a gram of gold that is physically stored” in vaults of the Borsa Istanbul Turkish stock exchange.
The system provides three main transactions — issuance, repayment and transfer — the bank noted.
“There are also additional features on the blockchain-powered BIGA Platform, including integration with the Gold Transfer System, clearing authorization, as well as monitoring and reporting tools,” it said.
Taking part in the system are state lenders Ziraat and Vakif, private lender Garanti BBVA, and private and state participation banks Albaraka Turk, Kuveyt Turk and Ziraat Participation.
The bank also stressed that the first blockchain-powered financial network was created with participation banks, which were able to transfer gold balances 24/7 after upgrading their internal systems.
Last year Takasbank developed another blockchain-based system for smooth information flow among financial institutions.
Takasbank is a subsidiary of Borsa Istanbul, over 80% shares of which are held by Turkey’s Wealth Fund. Source
We just see this as the first realistic step to a gold backed global trading platform. Don’t forget about all the gold trading platform that are either under development, completely built out and operational or just coming to the drawing table. This is to say nothing of the fact that Iran and Turkey have been settling gold trade, for the world, for hundreds, if not thousands, of years.
The next step should be the completion of the gold trading platforms and the tying all the systems together through the AIIB, BRICS Development Bank or one of the payment messaging systems, CIPS or MIRS. 2020 is already shaping up to be a year of massive, massive change.